Post on 14-Apr-2017
transcript
Consumer Behaviour
Concepts and
Applications
Not a simple picture !!!
1
To consider
influences on consumer buying processes
problem-solving: pleasure seeking (irrational) vs. rational views of buying
how we construe our buying/spending: perceptions, attitudes & motivations pre-exchange, in the exchange itself & post exchange
categories of influence: environmental and cultural
individual and reference groups
Insights from learning theory
B2C and B2B organisational buying behaviours
marketing strategy & communications design implications
2 2
Obviously
Individual customers & organisational
customers buy goods & services
They are stimulated & prompted to buy
Marketers
are interested in their decision behaviour
try to stimulate & influence this behaviour to
get better responses from the customer
3 3
Marketers, actors & roles in buying
marketing concept …"satisfy consumer needs for profit/value" so....
to segment, target & construct our marketing mix & promotions well, we must understand consumers & their behaviour
we can study actual purchases then find ways to encourage them to consider buying & then buy !!!
buying may involve many steps
many people
the actual purchase is but one part of the process
Actors and roles
the same person can play
multiple roles
•consumers
•opinion formers
•marketers
•public policy actors
Who is important in the buying
decision?
What do they buy & how much ?
When do they buy & where ?
How do they buy?
What choice criteria do they use?
How do they respond to the efforts
we use?
4
Buyer Behaviour Model
4
buyer’s
black
box
Needs - wants, stimuli
Product, price, place,
promotion etc
Environmental (PEST)
factors
Buyer
responses
Choices of
•product
•brand
•dealer
•timing
•price
Buy more, less,
stay loyal etc
5 5
Information search
How we buy (a rational view)
Need recognition,
problem-awareness
Evaluate alternatives
Information search
Buy
Post-purchase
evaluation
Shape desire, want
Evaluate alternatives (against evoked set)
Window-shop – simmering interests
Buy
Post-purchase
evaluation
• functional
• emotional ?
• current vs desired situation
• relative importance
• need inhibitors
• are they aware of need ?
• can we mediate need inhibitors?
• can we stimulate awareness &
action
• internal search (memory)
• external search (personal
sources, commercial sources
• third party reports (e.g. Which)
• personal observation/testing
Evoked
set
Operant (or instrumental) conditioning
Learning based upon the consequences of
behaviour
the chance of a specific behaviour goes or
thru +ve or -ve reinforcement each time the
behaviour happens
we associate the pleasure or displeasure of the
reinforcement with the behaviour
Consequences of responding that increase
behaviour are “reinforcers”
Marketers want to know the “reinforcers” 6
Responses are reinforced, punished,
or extinguished 1
Reinforcement is …
a consequence that more frequent behaviour
Positive reinforcement
a behaviour (response) a favourable stimulus
(commonly pleasant) increasing the frequency
of the behaviour
Negative reinforcement
a behaviour (response) lessening of an aversive
stimulus (commonly unpleasant) increasing that
behaviours frequency
7
Responses are reinforced, punished,
or extinguished 2
Punishment
a consequence that causes a behaviour to occur less
often
Positive punishment ("P. by contingent stimulation")
a behaviour (response) an aversive stimulus
a decrease in the behaviour.
Negative punishment ("P. by contingent withdrawal")
a behaviour (response) removal of a favourable
stimulus e.g. taking away a naughty child's toy, resulting
in less of that behaviour
8
Responses are reinforced,
punished, or extinguished 3 Avoidance learning
a behaviour r ending of an aversive
stimulus e.g. we no longer contact someone &
so avoid their unpleasantness.
Extinction
a behaviour (response) that had previously been
reinforced is no longer effective
the lack of any consequence following a
behaviour 9
10 10
Roles in the decision process after Blackwell/Miniard/Engel, 2007 Consumer Behaviour, 10th Ed, Thomson
each role can be acted by parent, children or other
members of the buying centre.
Each actor may display
multiple roles when buying
•a toy purchase
•a house
•a washing machine
•an armoured vehicle
•a sound system
•computer software
Infants, teenagers, working
women, husbands?
Influencing Strategies
1. expert influencing
2. subtle (incl. use of
rewards
3. emotional
4. combination
Who is
initiator
influencer
decider
buyer
user
11
What is the Relative Influence of Husbands
vs. Wives in Decision Making?
How is this changing?
12 12
Influences on Consumer
Behaviour
Cultural broadest & deepest influence
cultures & subculture
social classes
Social Family
Social roles and status (multiple)
Reference groups
Membership - primary vs. secondary
Aspirational vs. dissociative
Personal Age
Life cycle stage
Occupation
Economic circumstances
Lifestyle
Personality
Self-concept
Psychological Motivation
Perception
Learning
Beliefs
Attitudes
13 13
Personal influences Perception "mind" processes - selection, association,
organisation & interpretation. We
only note some things (selective) i.e. what grabs attention + distortion & retention
associate & categorise information into meaningful wholes
interpret/make inferences
information framing e.g.
good news or bad news first ?
accentuate the positives, eliminate the negatives
Learning classical & operant conditioning
cognitive learning
by rote
vicarious (from others)
reasoning
what motivates us
what we believe in real knowledge, opinion or
faith
Our attitudes relatively consistent
evaluations, feelings, tendencies towards something
Three components
cognitive (belief),
affective (feeling),
conative (behavioural)
personality
self-concept, lifestyle & life cycle stages
14
Perceptual, conceptual & related capacities
Perceptual - Sensing, measuring, judging
Colour, sound, texture, smell. Interpreting smells, noises, signals
Monitoring sounds, vibrations, data, information
Frames of reference – what is your “vantage point”
Conceptual
associating, abstracting, formulating, calculating, inferring
understanding processes in the abstract
deriving ideas & predicting from associated, comparative information
depends on knowledge and know-how (range & level)
dealing with symbolic information + its associations
Relating - Ego + alter-ego oriented:
need for achievement, power, affiliation
sensitivity & empathy, identification & association, objective-subjective, attitudes & values
Physical
Storage, access, processing & transmission capacity, security, privacy
15
Concepts in socio-cultural
examination Culture
a socially constructed complex of values, ideas, attitudes, institutions, meanings & symbols that shape and are shaped by behaviour & maybe passed on thru generations
Social Class
relatively permanent divisions in a society into which individuals or families may be categorized
based on perceived status & prestige.
Sub- or Micro-culture
a sub-group with its own distinguishing modes of behaviour.
Role
Behaviours, rights, duties expected of an individual in a group by other members
Reference groups
structures & standards influence behaviour.
Membership
groups we actually belong to
Aspirational
We wish to associate with this group.
Disassociative
We do not want to be identified with this group.
Power studies
how roles, groups & norms influence individual behaviour.
16
Opinion formers
Trendsetters
influential people in a group who
purchase new products early
serve as information sources for others
The Media
TV, newspapers, magazines, Internet communication
commentators
the media need "stories"
Sellers & Marketers
"seeding" the media. Pay media producers for product
placement in "publication channels"
From a Fashion house to Primark
Advertising, promotions & incentives
Word-of-mouth - viral
19
Personality & self concept
extroversion-introversion
self-confidence, dominance
sociability
autonomy
defensiveness
adaptability
aggressiveness
Towards a brand personality:
“the brand & Me”
sincerity
down to earth, honest, wholesome, cheerful
excitement
daring, spirited, imaginative, up-to-date
competence
reliable, intelligent, successful
sophistication
higher class, charming
ruggedness
outdoors, tough
e.g. Take care of pennies & £ will take care of themselves
Levi Jeans ?
Swaferga ?
Branston baked beans? Chicken jalfrazi ?
Top Gear ?
Yesterday Channel ?
Lands End?
20
Components of Attitude
Attitude
(overall orientation
toward object or idea)
Cognitive
(knowledge & beliefs
about a subject/object)
Affective
(overall feelings or
emotive reactions)
Behavioural
(how we tend to behave)
A person’s enduring
favourable or
unfavourable evaluation
of some object or idea
21
Choice criteria
attributes & variables a
consumer uses when
evaluating products &
services
different members of
buying centre obviously
may use different criteria
e.g. a teenager or a WAG
(self-image), a parent (for
the baby), an OAP (price
or risk reduction)
Social
status
social
belonging
fashion
Personal self-image
risk reduction
morals
emotion
Technical
reliability
durability
performance
style/looks
comfort
delivery
convenience
taste
Economic
price, VfM
running costs
residual
value
life cycle
costs
22
Consumer Problem-Solving
Categories
Routinised (habitual)
repeat buys.
Advertising may influence a change – also
promotions (2 for 1), branding to keep product in
customer’s mind
Limited problem solving (LPS)
buyer has some experience, may check prices
etc. Buyers can advertise to stimulate & compare
or reduce risk of brand switching
Extended problem solving (EPS)
23
Extended problem-solving
Research all choice
alternatives + examine
solutions
alternatives are
differentiated &
numerous
high deliberation &
involvement time
personally relevant
(risks)
high potential for
cognitive dissonance
self-image
risks
social
factors
24
Cigarette advertising
Cognitive dissonance (after Festinger)
discomfort when facing logical inconsistencies in our
thinking (cognitions) e.g. a belief in animal rights may be
seen as inconsistent with eating meat or wearing fur.
We may feel anxiety assoc. with bad decisions: guilt,
shame, anger, embarrassment, stress or other. This can
lead to rationalisation: justifications to support our
choices or change in attitudes, beliefs & behaviours.
When ideas are consistent … harmony or consonance.
If cognitions are unrelated, they are "irrelevant" not
dissonant.
25
Aesop's "The Fox and the Grapes"
A fox sees some tasty, grapes high on the
vine but can't think how to reach them. He
concludes that the grapes are probably not
worth eating anyway (not yet ripe, too
sour).
Nb. dissonance in the desire for something
unattainable & so the fox irrationally
decides that the "thing" must be flawed
(Sour Grapes).
26
Smoking
we know that cigarettes cause lung cancer
we want to live a long and healthy life
we can
quit smoking & reduce the tension between the contradictory
ideas or
deny conclusions about lung cancer or justify our smoking
“Only a few smokers become ill". "It only happens to very
heavy smokers“. "If smoking does not kill me, something
else will." "I am a smart, reasonable person who makes
good decisions." Easier to make excuses than to change
behaviour. Humans are rationalizing and not always
rational.
27
28
Social classes
Upper Uppers
Lower Uppers
Upper Middles
Middle Class
Working Class
Upper Lowers
Lower Lowers
Chavs
• slang (UK) for a subcultural stereotype
• Aspirants who want to be in a "class"
above their actual class.
• spend on fashion for upward social
mobility.
• fixated on fashion 'designer' clothing,
handbags, gold jewelery e.g.
Burberry,
• trying to adopt lifestyle of admired,
referent class but not seen as
successful.
• considered to be in poor taste,
ignorant,
• labelled as "trying too hard, not worthy
enough".
29
VALS2 psychographic groups
Actualizers
Fulfilleds
Achievers
Experiencers
Believers
Strivers
Makers
Strugglers
How do you see each category behaving as buyers?
30
Forrester Technographics
customer segments by motivation, desire & ability to
invest in technology
30
31
Start here
Explain the customer behaviour appeals being
used by … each of the following …
a selected product group within e.g. Gillette
a company within the earth-moving equipment industry e.g. JCB, Caterpillar, Komatsu etc
A group within the hotel sector including: Hilton, Accor, Travelodge, Townhouse
HMV
What common or different customer behaviour appeals are being used by
http://www.wickes.co.uk/
http://www.screwfix.com
http://www.diy.com/
http://www.homebase.co.uk
32
Explain the following in terms of consumer
behaviour debate
fitting rooms
return of goods policies e.g. B&Q, Next on-line
2-for-1, 20% bigger
interest free for 3 months (over £300)
3-years (DFS)
"Never knowingly undersold" - John Lewis Partnership
free delivery over £15 (Amazon)
main dealer trade in values, old car-new car
easy financing terms
free insurance
mobile phone automatic new model + cheaper contract + extras
home deliveries e.g. Tesco
£15 (21 days in advance), £26 (7 days), £55 – with on-line booking - Travelodge
4x Tesco Club Card points value for Cafe Rouge vouchers (£8 = £32)
33
Post-purchase evaluation
We want customer to have positive experiences from purchase but they may experience
Cognitive Dissonance Pre-purchase, purchase or post-purchase
attitudes & behaviour should be consistent with one another. If you buy a car & your friend thinks that it is rubbish …..
uncertainty – "Have I made the right decision?"
feel anxiety, disappointment, remorse
discrepancy between expectation & experience
reflect on opportunity cost and lost - difficult decision, many alternatives
irrevocable decision
neurotic customer (impulse buy)
post-purchase remorse
What can
marketer &
seller do?
34
Post-purchase Behaviour
expectations are compared to performance
post-purchase satisfaction influences future behaviour future purchasing behaviour
word-of-mouth communication
Marketers try to influence post-purchase behaviour. How ? Post-purchase communication to reduce dissonance,
returns & order cancellations
Talk with customers: discover new uses for existing products
etc
35
Evaluate Harley-Davidson Consumer Behaviour
Hells Angels ? Burly, leathers, bikers, rebels
New breed: older
more affluent
better educated
rubbies (rich urbans)
Showrooms + sales approaches
Customer types from HD
research
adventure-loving traditionalists
sensitive pragmatists
stylish status seekers
laid-back campers
classy capitalists
cool-headed loners
cocky misfits
all loved their Harleys because
independence, freedom, power
more than a machine – part of
self-expression
classic look, throaty sound
American legend
36
Scope of B2B Market
Agriculture
Mining
Construction
Manufacturing
Transport
Wholesale & retail
Finance, insurance, property
Government
Non-profit & voluntary organisations
different needs & buying patterns e.g. medical from rubber gloves vs body scanner
buy raw materials/inputs to make other goods/services e.g. sugar & flavouring as inputs for Pepsi
sell on to other business users or consumers e.g. Argos
use purchases to conduct business e.g. stationery, legal services, IT/systems consultancy, marketing services
37
Purchasing decisions in B2B Markets
Buying is less frequent.
new task buy
buying decision not been made before
modified rebuy
bought before but this time change spec. or new supplier
straight rebuy
routine purchase made many times before
One-off, a batch or steady flow (JIT)
Long, complex negotiation
Service & consistency of quality & supply are vital
Buying centre
Buying often a group process. Who is in the buying group?
Users
use the product e.g. trucks
Influencers (direct or indirect)
Tech know-how, budget etc
Deciders
Make the actual decision: purchasing officer, manager, product/service user
Gatekeepers
Control flow of information
Buyers
Select suppliers & negotiate terms
38
Organisational buying
Need recognition,
problem-awareness
Evaluate, negotiate,
select
Search for sources,
research & approve
Finalise contract &
order routines
Performance feedback &
evaluation
Determine specification &
quantity
Receive proposals & analyse
Integrate partner
systems
competition
legal steps
financing
JIT
logistics
conflict
outsourcing
quantity
continuity
quality
price
financing
life cycle costs
prody
maintenance
residual values
risks
politics
personal
Choice criteria
Can we assume that B2B buying motives are rational, methodical & objective
Personal factors incl: relationships, self advancement
Motivators include
Cost & profit-related benefits
Incentives & promotional support
Supply alliances for expansion & synergy + share costs, improve productivity etc
39
Relationship Marketing establishing & developing successful exchanges with customers.
Influences global competition & defensive strategies. Growth in services (direct relationships). Focus on the ‘value chain’ + the ‘value proposition’ incl offering specific competencies
Customer relationship management (CRM) maximise customer retention & share of customer’s business
past behaviour is important
The future involves increased WWW use – direct marketing & personalisation
costs of servicing unprofitable customers
focus on better servicing of other customers